The ultimate discretion for eligibility in the Stanford MSx Nonprofit/Public Service Loan Forgiveness Program lies entirely with the Financial Aid Office, and will be decided on a case-by-case basis. Determinations, once rendered, are final. However, other relevant criteria may be taken into consideration at the discretion of Stanford GSB.
This is not an entitlement program since eligibility is determined by the Financial Aid Office. We reserve the right to change eligibility guidelines and required application materials at any time.
Alumni can participate in the program any time while in loan repayment status. Eligibility during any given year does not automatically qualify alumni for any future year. Loan forgiveness is dependent on available funding.
Applicants must be working at a Stanford GSB approved organization meeting one of the following descriptions:
- A qualified nonprofit organization — such as an Internal Revenue code approved section 501(c)(3) or 501(c)(4) organization, or a foreign equivalent — which aims to better society through constructive means
- A local or national government
Applicants must work at the organization at least part time (20 hours or more) and with the intention of being with the organization for at least six months.
Applicants are required to notify our office immediately if:
- They change jobs
- Their salary changes
- Their marital status changes
These changes will affect an applicants eligibility; applicants will be required to repay any funds awarded after they later became ineligible.
Applicants can work at a for-profit organization as long as they work at least part time at a qualified organization. The applicants earnings must be from an employer with a 501(c)(3) or 501(c)(4) status or remain employed at such an organization at least part time.
We consider volunteerism willful employment without compensation; therefore, volunteer activities are not considered qualifying employment for the program.
Consulting/contract employment at a qualified nonprofit organization or approved local or national government (e.g. receives compensation reported on a 1099) does not qualify for this program.
The applicant must demonstrate that he/she would face undue financial hardship if required to repay the loan in full without financial support. We calculate applicant’s adjusted income to determine the amount of loan forgiveness for the year in which they apply. Applicants are expected to have a minimum income to cover a reasonable cost of living.
|Adjusted Income||Eligible Loan Forgiveness|
|$95,000 or less||Full amount of annual loan payments|
|More than $95,000||A percentage of annual loan payments|
The Financial Aid Office will include other forms of taxable income, such as interest income and dividends, as well as non-taxable income, such as 403(b) and 401(k) contributions in calculating your adjusted income.
Income Eligibility Threshold
We annually update the income threshold we use to determine eligibility for full loan forgiveness. The amount is based on a percentage of the median base salary and other compensation of Stanford GSB’s prior year’s graduating class. Income eligibility information typically is updated each year in October.
We may consider assets in our adjusted income calculation. Although a reasonable amount of assets will not disqualify an applicant, substantial amounts of assets may lead to a reevaluation.
The Financial Aid Office will only include original loans borrowed while attending Stanford GSB to help fund their education. All loans must have been certified and administered by the Stanford GSB Financial Aid Office. Loans must be in repayment status when applying. The minimum repayment plan length we will consider is 10 years (120 months).
Only loans in good standing are eligible. An applicant’s loans will not be eligible if the loans are:
- Eligible for or in deferment/forbearance
- Past due
If an applicant has consolidated their loans borrowed for their Stanford GSB education, they are eligible for this program if they were consolidated through the Federal Family Education Loan (FFEL) or Direct Loan Consolidation Program.
Forgivable loans, funds received from employers under conditional contracts (i.e., tuition reimbursement, salary advance, etc.) to pay tuition, books and supplies, and other fees, are not eligible for the program.